RiCoal selected Rostov for its Petrochemical complex
Estimated to require $2.5 billion capital expenditure, RiCoal selected Rostov-on-Don location because of available coal and natural gas available in the region and the easy access to export markets for the petrochemical production.
RiCoal is a joint venture of local partners including:
– Spetzmontazhproekt-6 is a contractor specialized in construction of industrial buildings and large infrastructures
– Stroitelno-montazhny poezd-162 is an engineering company based in Bataisk
– Krosna Bank is a registered Russian bank.
Because of the shortage of petrochemical products in the region, the RiCoal partners identified the opportunity to take advantage of the huge local reserves of coal in the Donbass Basin and of the natural gas available all over between the Azov Sea, the Black Sea and the Caspian Sea to work on this Coal-To-Olefin and petrochemical complex.
RiCoal to combine Coal-To-Methanol and Methanol-To-Olefin processes in Rostov petrochemical complex
The process of the project is split in two stages:
The RiCoal project should consume:
– 1.5 million tons per year (t/y) of coal
– 1.6 billion cubic meters per year (cm/y) of natural gas.
The RiCoal project will require to build:
– 1,730 t/y coal-to-methanol plant
– 333,000 t/y polypropylene facility
– 269,000 t/y polyethylene unit
– 122,000 t/y acid acetic plant
– 100,000 t/y acetic anhydride
– 1.6 billion cm/y gas compression station
– 40 kilometers water supply pipeline
– 18 kilometers natural gas inlet pipeline
– 10 kilometers electrical power lines
– 12 kilometers railways connection
In the first phase, RiCoal will use the existing export terminals,and in a second phase will build its own export terminal.
Regarding the financing of the infrastructures, RiCoal is in discussion with the Rostov Region Government to provide the financing considering that the RiCoal Coal-To-Olefin project should create more than one thousand permanent jobs in the region.
WorleyParsons completed RiCoal feasibility study
As a result the licensors and the suppliers of large equipment have been pre-qualified, some have already been selected:
– Air Separation: Air Products from UK
– Natural gas steam reforming: Haldor Topsoe from Denmark
– Coal gasification: GE from USA or Siemens from Germany
– Methanol manufacturing: Haldor Topsoe from Denmark
– Methanol to Olefins: UOP from USA
– Power generation: GE from USA and Siemens from Germany
– Power boilers and other equipment: Foster Wheeler from Russia and Finland
To support the project, RiCoal is looking for strategic partners in Russia and overseas to provide financial equities and technological expertise in similar projects.
This fund raising exercise should be completed by mid 2013.
Then the engineering, procurement and construction (EPC) phase should start on the second half of 2013.
With a construction to be completed at the end of 2015, the RiCoal Coal-To-Olefin project should see the first shipments to take place on the first half 2016.